Question

What is the calculated retail price in dollars for the given scenario: markup on retail is 36.5%, and cost in dollars is $45.72?

A) $62.37
B) $62.31
C) $72.36
D) $62.72

Answer 1

To calculate the retail price with a 36.5% markup on a $45.72 cost, convert the markup to decimal and multiply by the cost, then add the result to the original cost. The correct retail price would be $62.41 after rounding, though there may be a mistake as this doesn't match the given options.

Step-by-step explanation:

The question involves calculating the retail price of an item given its cost and the markup percentage on retail. The cost of the item is given as $45.72. To find the retail price, we first need to calculate the markup amount by multiplying the cost by the markup percentage (expressed as a decimal). In this scenario, the markup on retail is 36.5%.

First, we convert the markup percentage to decimal form: 36.5% = 0.365. Next, we calculate the markup amount by multiplying the percentage in decimal form by the cost:
0.365 × $45.72 = $16.6882.

We then add the markup amount to the original cost to find the retail price:
$45.72 + $16.6882 = $62.4082.

After rounding to the nearest cent, the retail price would be $62.41, which is not one of the provided options, so there seems to be a mistake in the question or the options given. The closest provided option to our calculated value is $62.31 (Option B)